For every new share issued, shareholders will receive one free attaching option exercisable at 4.5 cents on or before September 30, 2020.
The rights offer is underwritten to an amount of $500,000 by Perth based CPS Capital Group Pty Ltd.
Interestingly, the shares offered are attractively priced at a 40% discount to the previous close.
White Cliff will use the funds raised by the rights offer for drilling to define further gold resources at its gold deposit in the Kyrgyz Republic (Aucu project already has a resource of 3 million tonnes at 5.1 g/t gold for 484,000 ounces from surface).
The company will also carry out pre-development studies including metallurgy, environmental, economic and licence conversion.
White Cliff will also use the funds to define a resource and for preliminary metallurgical test work at its Coronation Dam Cobalt and Nickel Deposit in Western Australia.
Furthermore, the company has planned drilling to define cobalt and nickel resources at its Ghan Well Cobalt-Nickel project in Western Australia.
White Cliff managing director Todd Hibberd said: “The company has delivered two significant exploration outcomes this year with a 60% increase in the gold resource at the Aucu gold-copper project in the Kyrgyz Republic (now 3 million tonnes at 5.1 g/t containing 484,000 ounces of gold) and the identification of extensive and high grade cobalt and nickel results from the Coronation Dam project in Western Australia.
“Both projects have substantial economic potential and provide a platform for further strong positive news flow and resource updates.
“By undertaking a rights issue, all existing shareholders will be given the opportunity to acquire new shares at the same price with a free attaching option for which the company will seek ASX quotation.
“If the maximum funds are raised the company will be funded such that its primary focus can be on defining cobalt and nickel resources via drilling in WA and defining further gold and copper resources at the Aucu Gold project.”